Apple AI servers unused in warehouses due to low Apple Intelligence usage
3 hours ago
- #Siri
- #Apple
- #Cloud Computing
- Apple is reportedly in talks with Google to host new Siri models on Google servers instead of Apple's Private Cloud Compute.
- Apple's Private Cloud Compute is underpowered and underutilized, with only about 10% of its capacity being used on average.
- Apple's cloud infrastructure is fragmented, leading to inefficiencies and idle server capacity.
- The Apple finance team is frustrated with the costs of duplicate infrastructure but unwilling to invest billions in overhauling it.
- Private Cloud Compute is described as underpowered and difficult to update, with chips not powerful enough to run the latest frontier models like Gemini.
- Apple is expecting higher demand for new Siri chatbot features, but the current Private Cloud Compute stack is not up to the task.
- Apple may invest more heavily in-house for cloud infrastructure in the future, but changes will take time.